Federal Reserve Chair may be replaced, could the expansion of the Treasury Secretary's powers bring an opportunity for interest rate cuts?

【CoinPost】The Trump administration is accelerating the renewal of Federal Reserve leadership. According to the latest news, U.S. President Trump plans to announce a new Federal Reserve Chair candidate in early January next year, with Treasury Secretary Mnuchin responsible for organizing and advancing the candidate selection process.

There are deeper strategic intentions behind this power transition. Mnuchin is drafting a radical reform agenda for the Federal Reserve, with the core goal of lowering interest rates and adjusting policies. Notably, the new Fed Chair may play a more “cooperative” role—forming closer policy coordination with Treasury Secretary Mnuchin.

The most critical change here is that the Treasury Department may gain unprecedented power in the future. For a long time, central bank asset purchase policies (quantitative easing) and asset sale policies (quantitative tightening) have been considered within the central bank’s independent authority. However, under the new power framework, the Treasury Department is expected to have greater influence over these major decisions. What does this mean? The rate-cutting cycle could accelerate, liquidity may become more abundant, and this will have a profound impact on the entire financial market.